Lyondellbasell Industries Nv · NYSE:LYB
Lyondellbasell Industries Nv — Q3 2024 Earnings Presentation
21 slides from Lyondellbasell Industries Nv's earnings presentation, Nov 1, 2024
Slide 1: Third Quarter 2024 Earnings
Third Quarter 2024 Earnings November 1, 2024
Slide 2: Cautionary statement
Cautionary statement The statements in this presentation relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject
Slide 3: Safety performance
Safety performance LYB’s operational results are rooted in our fundamental commitment to safety Injuries per 200,000 hours worked 0.4 0.3 0.2 0.1 2020 2021 2022 2023 Sept. 2024 YTD LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. Notes: Medium and large c
Slide 4: Third quarter 2024 highlights
Third quarter 2024 highlights Significant decline in oxyfuels and refining margins partially offset by strong U.S. ethylene margins $0.6 B $1.75 $1.2 B $0.7 B Net income Diluted EPS EBITDA Cash from operating activities $0.6 B $1.88 $1.2 B 9% Net income Diluted EPS EBITDA Return on ex. identified it
Slide 5: Sustainable growth through our MoReTec technology
Sustainable growth through our MoReTec technology Construction has begun on our first commercial-scale catalytic advanced recycling plant in Germany • MoReTec-1 is integral to our Cologne hub – together with upstream investments in waste sorting and our existing LYB olefins and polyolefins assets •
Slide 6: Future options for Houston Refinery
Future options for Houston Refinery Leveraging existing assets and infrastructure to unlock sustainable value Aligned with LYB strategy 1 2 3 Expanding access to sustainable feedstocks Addressing customer needs Advanced Renewable cracker LYB-focused with market-leading approach in recycling feedstoc
Slide 7: Resilient cash generation amid difficult market conditions
Resilient cash generation amid difficult market conditions Strong balance sheet supported by steady cash conversion Cash from operating activities Cash from operating activities USD, billions $3.4 B 3Q24 LTM $7 6 Cash and cash equivalents 5 $2.6 B September 30, 2024 4 Net debt to EBITDA ex. identifi
Slide 8: Disciplined capital allocation
Disciplined capital allocation Committed to balanced capital allocation while moving forward on our strategy USD, billions Delivering results $4 • $670 MM cash from operating activities in 3Q24 • Achieved 77% cash conversion2 over last 12 months 3 Generating value for shareholders $2.9 • Returned ap
Slide 9: 3Q24 segment highlights
3Q24 segment highlights Lower crude oil price and gasoline cracks impacted I&D and Refining while higher U.S. ethylene margins benefited O&P EBITDA variance by segment ex. identified items USD, millions $1,644 $88 $11 $1,211 $1,373 $(184) $(21) $(38) $(15) $(3) $1,174 2Q24 O&P O&P EAI I&D APS Refini
Slide 10: Olefins & Polyolefins – Americas
Olefins & Polyolefins – Americas Integrated polyethylene margins expanded sequentially and year-over-year 3Q24 market dynamics EBITDA ex. identified items USD, millions • September 2024 YTD North American polyethylene and polypropylene industry sales increased ~7% and ~4%, respectively, over the pri
Slide 11: Olefins & Polyolefins – Europe, Asia & International
Olefins & Polyolefins – Europe, Asia & International Lower feedstock costs partially offset by planned downtime EBITDA ex. identified items 3Q24 market dynamics USD, millions • Higher integrated polyethylene margins • Modest seasonal demand $81 Near-term outlook $70 • Slower seasonal olefins and pol
Slide 12: Refining
Refining Lower Maya 2-1-1 spreads driven by declining gasoline margins coupled with unplanned downtime EBITDA ex. identified items 3Q24 market dynamics USD, millions • Lower margins driven by compressed gasoline and distillate crack spreads and high refining industry operating rates $105 Near-term o
Slide 13: Modeling guidance for refining exit
Modeling guidance for refining exit Expecting a net cash benefit during 2025 2025 estimated net cash impact • First crude and coker units shutting down USD, millions during January 2025 • Second crude and coker units and FCC and $150 ancillary units shutting down during February $325 $300 2025 $(75)
Slide 14: Intermediates & Derivatives
Intermediates & Derivatives Lower oxyfuels margins as gasoline cracks declined EBITDA ex. identified items 3Q24 market dynamics USD, millions $794 • Seasonally lower gasoline crack spreads impacting oxyfuels $708 margins and volumes • Lower styrene margins due to ample market supply Near-term outloo
Slide 15: Advanced Polymer Solutions
Advanced Polymer Solutions Softer seasonal demand compounded by rising automotive OEM inventories 3Q24 market dynamics EBITDA • Substantially lower automotive demand drove price and volume USD, millions headwinds • Resilient demand in packaging supported masterbatch business $40 Near-term outlook $3
Slide 16: Technology
Technology Steady catalyst results with additional licensing milestones expected in 4Q24 EBITDA USD, millions 3Q24 market dynamics • Licensing revenue moderated $146 Near-term outlook • Increased licensing revenue $118 • Improving catalyst sales and product mix $84 Our actions $77 $69 Broke ground o
Slide 17: Near-term market outlook
Near-term market outlook Benefits from lower interest rates largely deferred to 2025 • Slower seasonal demand in 4Q24 • Steady global demand as consumers North • Relatively low ethane costs continuing to Packaging remain sensitive to higher costs America support advantaged integrated PE margins • U.
Slide 18: Advancing our strategy despite challenging markets
Advancing our strategy despite challenging markets 4Q 2024 outlook Progressing our strategy • 2H 2024 results expected to be lower than 1H 2024 • Clear criteria and focused strategy to drive profitable growth in the company’s core businesses • Seasonally lower 4Q demand and slow economic growth • Eu
Slide 19: Appendix
Appendix
Slide 20: Information related to financial measures
Information related to financial measures This presentation makes reference to certain “non-GAAP” financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, b
Slide 21: Information related to financial measures (continued)
Information related to financial measures (continued) Return on invested capital - Income from continuing operations, adjusted for interest expense, net of tax and items affecting comparability between periods divided by a two-year average of invested capital adjusted for items affecting comparabili
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